The spirits group Rémy Cointreau, affected by sluggish sales in the United States and sluggishness in China, announced on Thursday profits down 18.6% in the first half of its staggered financial year.
Its net profit over the period from April to September amounted to 92 million euros (86 million francs), for a turnover of 533 million euros, down 16.2% due to reductions in prices and especially in volumes.
‘In a complex economic and geopolitical context, Rémy Cointreau was able to preserve its margin in the first half thanks to rigorous cost management and a now more agile organization,’ explained Eric Vallat, the group’s general manager, in a press release, who plans a cost reduction plan of 50 million euros.
Rémy Cointreau announced at the end of October the lowering of its annual forecasts. More precisely, it anticipates for its staggered 2024-25 financial year an organic drop in its turnover of between -15% and -18%, and a current operating margin of between 21% and 22%, on an organic basis. -he clarified on Thursday.
The company’s portfolio is very dependent on the success of cognac (nearly two thirds of its turnover) and the Chinese demand for this high-end drink.
However, this market is contracting and Beijing’s desire to impose additional customs duties on wine spirits, due to a trade conflict with the European Union, is darkening the horizon.
‘The group has taken note of the provisional decision of Mofcom (Chinese Ministry of Commerce, Editor’s note) to apply additional customs duties of 38.1% on cognac imports into China, from October 11, 2024. If these provisional rights were confirmed, the impact would be marginal for the 2024-25 financial year and the group would activate its action plan to mitigate the effects from 2025-26’, it said on Thursday.
/ATS
Business
